BRUIN Financial Says City Workers Expectations Out Of Tune

• 67 per cent of employees are expecting salary increases, just 23 per cent of employers expect to give them

• Job security only important to 20 per cent of employees

• Just four per cent of employees care about an employer’s reputation

Financial services firms are facing a challenge to combat employee salary expectations which are out of sync with the new era of austerity expected in the sector.

& lsquo;City Horizons’ – a report by independent City recruitment firm BRUIN Financial - reveals that 67 per cent of employees are expecting salary increases in the next 12 months, with only 23 per cent of firms saying they are likely to give them.

Despite a lingering recession, these expectations have returned with a bang - even though those on both sides of the interview table acknowledged that remuneration packages need to change under the critical eye of Government and media.

The report was conducted to examine the attitudes of UK employees and employers following one of the darkest periods the global financial sector has ever seen.

And what it has revealed is a sector beginning to change and having to communicate that to the next generation of employees who are more interested in cash than job security.

The report found that 62 per cent of employers believed that job security would be at the top of employees’ list of what was important to them in regards to a role - it was actually just 20 per cent.

BRUIN Financial chief executive Robert Thesiger, said: “The sector has changed but it appears to be changing at a different pace for employers and employees.

“There is always a degree of salary disparity between the two but this is significant. Employees are also now of the opinion that job security is a & lsquo;nice to have’ but that nothing is certain nowadays.”

Candidates looking for a job also rank competitive compensation (21 per cent) much higher than employers thought they would (just 11 per cent), while the reputation of an employer now only means something to a handful of workers.

Robert Thesiger added: “This is the other side of the coin. It may be that as the next generation of employees moving up the career ladder recognise that security isn’t a given, they are at least going to expect a competitive salary to compensate.

“The sector as a whole has also begun to recognise that a recession which has chewed up and spat out some of the biggest names in financial services has left an employer’s reputation meaning a lot less to someone looking for a job.

“Where once we would have expected it to count for far more, just four per cent of employees admitted that the reputation of their employer mattered to them and just 10 per cent of employers thought it should.

“We are in a transitional period where employers are trying to recalibrate their approach, not only for a much changed sector but also for a changing influx of young, hungry but battle-scarred candidates who want it all.

“Increased salaries, career progression opportunities and work life balance – they are all on the interview agenda and it may be a difficult mix to get right when austerity is still very much the watchword.

“The global financial crisis has altered the playing field and created a new recruitment challenge for employers. The ones that tune in and get it right will end up with staff who may begin to recapture some of the loyalty that’s been lost and which employers aren’t as keen to buy back with bonuses.”

“There’s definitely more optimism from employees with regards to their own earning potential,” added Robert Thesiger

“I’m pretty sure a few are going to be disappointed when salary negotiations rear their head but the confidence in their own ability is strong, even though only 43 per cent felt secure in their current role.

“There’s plenty of unseen turmoil left in the financial services sector and we will see more consolidation which is likely to make the job market even more competitive.

“For future stability and the mutual benefits of a satisfied employee doing a great job and wanting to progress in a particular company, it is clear that both candidates and employers need to align their expectations a little more.”

City Horizons also examines a number of other recruitment and reputational issues in the financial services sector.

ENDS 1 October 2012

The report was based on the responses of approximately 2,000 candidates and 100 employers, typically HR Directors in large financial services businesses based in London.